Netgear's income almost doubles in 2Q

AP News
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Posted: Jul 28, 2011 6:47 PM
Netgear's income almost doubles in 2Q

Netgear Inc., which makes routers and other wireless products, said Thursday that its net income almost doubled in the second quarter on stronger revenue.

For the three months ended July 3, the company earned $20.6 million, or 54 cents per share. That's compared with a profit of $10.5 million, or 29 cents per share, in the year-ago period. Analysts on average expected a profit of 44 cents per share.

Quarterly revenue rose to $291.2 million, up from $195.9 million a year ago. Higher revenue from the Americas, Europe, Middle-East and Africa and the Asia Pacific regions all contributed to the increase. Gross profit rose to $90.4 million, compared with $69.6 million a year ago.

Total operating expenses rose to $62.8 million, from $48.8 million last year.

Starting with this quarter, the company is now managed in three units _ retail, commercial and service provider. The company said the new structure enables it to focus on core customer segments and allows be more nimble and opportunistic.

The company ended the quarter with $277.9 million in cash, cash equivalents and short-term investments. That's up from $231 million a year ago.

CEO Patrick Lo noted that the company introduced 17 new products in the quarter as it sought to build on its new product momentum.